There are two big myths about renters insurance. One is that it’s too expensive and the other is that it’s not needed.

Not having renters insurance is a pretty big gamble, considering that without it you face the cost of replacing your personal belongings after an event such as fire or theft. What’s more, you could face the prospect of defending yourself in a lawsuit because of some accident for which you might be held legally responsible, whether it happened where you live or elsewhere.

In many cases, for less than a couple hundred dollars a year you can protect your valuables, like your furniture and clothes, from loss by fire, theft, wind and water damage or other covered hazards. But many renters still don’t believe they need such insurance. A survey conducted by Cambridge Reports, Inc. for the Insurance Information Institute found that fewer than three out of every 10 renters purchase renters insurance.

Many renters mistakenly believe their landlord’s insurance will cover their own belongings. In fact, it would be extremely rare for a landlord’s policy to extend to tenants’ property.

To determine how much insurance coverage you’ll need, take a complete inventory of your personal items. An insurance agent can help with this by estimating the total value of your property. You’ll also need to decide whether to opt for depreciated or limited replacement cost coverage. Depreciated coverage is the cost to repair or replace your belongings minus depreciation. Let’s say you bought a quality sofa with an expected useful life of 10 years. If it’s now five years old and would cost about 1,000 to replace, you could expect to receive about $500 (less deductible) if your sofa was destroyed by fire. You would pay slightly more for limited replacement cost coverage, but you could expect to receive $1,000 for your sofa minus your deductible.

You should also keep in mind that insurance coverage for some types of personal property is limited in terms of dollars. Renters insurance also gives you personal legal liability coverage and medical payments to others who are accidentally injured while in your home, apartment or elsewhere if the injuries are caused by your actions. And, if you are forced to live elsewhere because of damage to your residence due to a covered loss, renters insurance covers additional living expenses.

Remember, you may not own the building in which you live, but you still need to have insurance to protect your property in the case of fire, theft or other hazards. Talk with your insurance agent for more information.

State Farm® has been in the business of providing excellent auto insurance coverage at an affordable price since 1922. Responding to our customers' needs keeps us the leader in auto insurance.

Car insurance coverage is designed to help financially cover potential auto-related damages, loss or injuries. It helps protect you, your passengers, your fellow drivers, pedestrians, other people's property and your vehicle. It can also help protect you in the event of an automobile-related lawsuit.

More people buy homeowners insurance from State Farm than any other insurer. Our claims network is one of the largest in the world, and it's accessible 24/7, online or by phone. And State Farm helps you save on homeowners insurance by offering a host of discounts for everything from multiple-line policies to everyday safety items like deadbolts, fire extinguishers, smoke alarm, and burglar alarm.

With State Farm Homeowners Insurance, you will be protected if disaster strikes.

Add up the value of all your belongings. You're probably looking at thousands of dollars. Could you afford to replace your property if it were stolen during a break-in or damaged during a fire?

For less than a dollar a day, a State Farm renters insurance policy will cover all of your property at its full replacement cost. Whether you rent a house or an apartment, protect your possessions with State Farm renters insurance, and you could end up saving thousands.

For less than a dollar a day, a State Farm renters insurance policy will cover all of your property at its full replacement cost. Whether you rent a house or an apartment, protect your possessions with State Farm renters insurance, and you could end up saving thousands.

Our claims network is one of the largest in the world, and it's accessible 24/7, online or by phone. We offer a host of discounts for everything from multiple-line policies to everyday safety items. With a State Farm Condo policy, you will be protected if disaster strikes.

The open road is always an adventure. You never know what might be around the bend. So make sure you're prepared for whatever the road has in store for you, with a State Farm motorcycle insurance policy.

We will consider any factory-built motorcycle, classic motorcycle, custom motorcycle, motorscooter and other two or three-wheel vehicles including minibikes and trail bikes licensed for use on public roads.

State Farm Bank®, Bloomington, Illinois, is a Member FDIC and Equal Housing Lender. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 1-877-SF4-BANK (1-877-734-2265).

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact State Farm VP Management Corp (1-800-447-4930) for a prospectus or summary prospectus containing this and other information. Read it carefully. AP2011/03/0416

Investing involves risk, including potential for loss.

State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.

Life Insurance and annuities are issued by State Farm Life Insurance Company. (Not Licensed in MA, NY, and WI) State Farm Life and Accident Assurance Company (Licensed in New York and Wisconsin) Home Office, Bloomington, Illinois